Vallourec (VK) Q4 2024 earnings summary

Executive summary

• Achieved zero net debt a year ahead of plan, reducing net debt by nearly €600 million to a net cash position of €21 million at year-end 2024.

• Welcomed ArcelorMittal as a 28.5% anchor shareholder and completed the sale of the Düsseldorf-Rath site for €155 million.

• Completed the acquisition of Thermotite do Brasil for €17 million, marking the first acquisition in nearly a decade.

• Announced a €1.50 per share dividend, the first shareholder return in a decade, representing 90% of H2 2024 cash generation.

• Launched Tubes Optimization Program in Brazil and advanced strategic investments in US and Brazil, including high-torque threading and CLEANWELL® technology.

Financial highlights

• Q4 2024 EBITDA reached €214 million with a 20% margin, up sequentially but down year-over-year; full-year EBITDA was €832 million with a 20.6% margin.

• Q4 net income, Group share, was €163 million; FY 2024 net income was €452 million.

• Q4 revenues were €1,065 million, down 17% year-over-year; full-year revenues €4,034 million, down 21%.

• Q4 adjusted free cash flow was €178 million; total cash generation for Q4 was €253 million.

• Liquidity at year-end 2024 was €1,877 million, including €1,103 million cash.

Outlook and guidance

• Q1 2025 EBITDA expected between €180 million and €215 million.

• H2 2025 expected to see higher international shipments, improved pricing, and stronger EBITDA, especially in the Tubes segment.

• Full-year 2025 mine and forest production targeted at 6 million tons; profitability tied to iron ore prices.

• Ongoing cost initiatives and premium product investments to support margin expansion.